Even with that belief, Kuroda went further, suggesting that even
larger and more innovative forms of monetary policy could be
delivered in order to achieve its medium-term 2% inflation
target.

“If we judge that existing measures in the toolkit are not enough
to achieve (our) goal, what we have to do is to devise new
tools,” said Kuroda. “I am convinced that there is no limit to
measures for monetary easing.”

Keeping his cards close to his chest, the BOJ governor provided
no indication as to what circumstances would warrant an even more
aggressive, and innovative, policy stance.

However, as was the case in the bank’s January monetary policy
statement, he noted that recent volatility across financial
markets could negatively impact confidence, both for business and
consumers.

According to Reuters, Kuroda also countered criticism that
the bank was running out of ammunition to accelerate the nation’s
core inflation rate – something that rose just 0.1% in the 12
months to January – saying negative rates won’t hamper its
efforts to gobble up government bonds.

Despite the aggressive tone from Kuroda, Japanese markets –
unlike last Friday – are having a tough session on Wednesday.

The Nikkei 225 is off 2.80% at 17253.35 while the USD/JPY has
fallen back below the 120 level, currently trading at 119.62.